Which of the Following Is Not a Logical Justification for Dividend

question 8

Multiple Choice

Which of the following is not a logical justification for dividend preference (vs.capital gains) in the real world?

• A) Institutional restrictions involving dividends
• B) Higher share prices from higher payouts
• C) A steady source of cash without transaction costs
• D) Differing income tax rates

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Definitions:

Extraversion

A personality trait characterized by outgoingness, high energy, and a preference for social interactions and external stimulation.

Sensation Seeking Scale

A psychological tool used to measure an individual's tendency to seek varied, novel, complex, and intense sensations and experiences.

Personality Differences

Variations among individuals in terms of their patterns of thinking, feeling, and behaving.

Neuroticism

A personality trait characterized by a tendency to experience negative emotions more easily, such as anxiety, anger, or depression.